Harry

Harry

12-09-2022

08:32

How a startup killed a multi billion dollar company. This dates back to 2010. A company called Gillete called ruled the shaving razor blade market with a market share of more than 70%

But suddenly in the next 5 years it saw erosion of its market share . The market share fell tò 54%. Now this was partially blamed on the dragging American company but at the same time another company saw a phenomenal rise

Gillete had everything going right. It had the best r&d ,a billion dollar valuation ,good cash flow but it was missing out on one thing. The customer

The issue with Gillete was that it was innovating too much with a very minuscule product like shaving razor and secondly it was spending too much on marketing by hiring international film & sportstars for its products

Enter a company called Dollar shave club. The company came up with a very interesting business model. Where in they got their razors manufactured by a company in South Korea.

Next they launched a YouTube video which went viral. The commercial focused on the pain points of the customers. The video had 10 million views in 72 hours and dollarshaveclub channel had more than 12000 subscribers

Dollarshaveclub kept its product line very simple and affordable and decided to take the online route . This kept their selling costs low

Within just 5 Years the company made $200 million in sales . Had 3.5 million subscribers. And got acquired by Unilever for a whopping $1billion


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